The ECB hiked the deposit rate by 25bp to 2.25% in June. While future timing is data-dependent, signals favor further hikes this year before a potential policy reversal in 2027.
Key Takeaways
- 1.The ECB raised the deposit rate to 2.25% as expected, with signals pointing towards further tightening this year despite some market speculation about a potential pause in July.
- 2.HSBC forecasts a peak of 2.75% for the deposit rate this year, followed by a full policy reversal starting in summer 2027.
Table of Contents
- Economics
- Facts
- Implications
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Authors
Chris HareSimon Wells
Themes
Inflationary PressureCentral Bank PolicyGeopolitical Risk
Regions
EuropeUK